Metrics evaluation systems are frequently used to monitor the performance of a process, typically a business process. For example, it may be desirable to ensure compliance with various constraints associated with the application of such well-known process optimization methodologies as Six Sigma® (a registered trademark Motorola, Inc., Schaumberg, Ill.) and/or Lean techniques. Six Sigma typically focuses on improving quality by decreasing variability, whereas Lean techniques focus on improving speed by reducing waste. These two methodologies are often used in conjunction with each other and/or other complimentary process optimization methodologies known to one having skill in the art.
One of the crucial elements of performing a Six Sigma or Lean process optimization is the selection of appropriate project metrics to be used as benchmarks in measuring process efficiency. Exemplary metrics used in conjunction with Lean techniques may include Customer satisfaction, Repeat sales, Market share, Mean time-to-failure, Poor-quality cost, Early-life failure rates, Warranty cost, Percentage of returned items, First-time and throughput yields, Suggestions per employee, and Dollars saved.
With regard to a Six Sigma methodology, a Balanced Scorecard approach is often used for the selection of project metrics as a method for ensuring that the project meets both customer and business needs. The Balanced Scorecard approach includes both financial and non-financial metrics, as well as lagging and leading measures across the four areas or perspectives: Financial, Customer, Internal Processes and Employee Learning and Growth. Lagging measures are those that are measured at the end of an event, while leading measures are measures that help as achieve the objectives and are measured upstream of the event.
Exemplary Financial metrics may include Inventory Levels, Cost Per Unit, Hidden Factory, Activity Based Costing, Cost Of Poor Quality, Overall Project Savings and Total Dollars Saved (TDS). Exemplary Customer metrics may include Customer Satisfaction, On Time Delivery, Final Product Quality and Safety Communications. Exemplary Internal Processes Metrics may include Defects, Inspection Data, Defects Per Million Opportunities (DPMO), Sigma Level, Rolled Throughput Yield (RTY), Supplier Quality, Cycle Time, Volume Shipped and Rework Hours. Exemplary Employee Learning and Growth metrics may include Six Sigma Tool Utilization, Quality of Training, Meeting Effectiveness, Lessons Learned, Total Trained in Six Sigma, Project Schedule Versus Actual Date, Number of Projects Completed, and Total Savings To Date.
A standard approach to implementing process optimization methodologies such as Six Sigma and Lean techniques is an initial engagement that provides recommendations for making a business process more efficient followed by periodic check-ups to ensure compliance with the recommendations. Typically, these recommendations include benchmarks in the form of a constraint on one or more of the aforementioned metrics. This standard approach suffers from several problems, however. Firstly, it can cause the optimization to become desynchronized with the current process status; for example, the process may become non-compliant without being detected until the next check-up. Moreover, the frequent polling of components in order to evaluate metrics may prove to be unnecessarily intrusive, especially in instances when the process remains compliant. Such unnecessary polling may prove deleterious to the performance of the process, thus negating any advantage to be gained from the process optimization.
Accordingly, there exists a need for improved techniques for process metrics evaluation that do not suffer from one or more of the problems exhibited by conventional process metrics evaluation techniques.